Source - RNS
RNS Number : 7601J
Everyman Media Group PLC
14 September 2016
 

14 September 2016

Everyman Media Group plc

("Everyman" or the "Group")

 

Interim Results (unaudited) for the six-month period ended 30 June 2016

 

Highlights

 

·     Revenue for the period up 49% to £12.1m (H1 2015: £8.2m)

 

·     Adjusted EBITDA up 91% to £1.4m (H1 2015: £0.7m)

 

·     One new venue added in the period and two since the period end, expanding the current estate to 19 cinemas

 

 

For further information, please contact:

Everyman Group plc

Crispin Lilly

Tel: 020 3145 0500

Cenkos Securities plc (NOMAD and Broker)

Bobbie Hilliam

Tel: 020 7397 8900

 

 

Chairman's Statement

 

I am pleased to report on the Group's half year results for the six-month period ended 30 June 2016. Revenue for the half year ended 30 June 2016 was up 49% on the comparative six-month period to £12,128,000 (30 June 2015: £8,159,000, full year to 31 December 2015: £20,316,000).

 

The first six months to 30 June 2016 saw us open a new venue in Bristol together with significant maturing revenue growth coming from the six venue openings and two refurbishments in 2015. A temporary one-screen venue opened in July 2016 in Kings Cross, which will remain in place until the permanent venue is completed in late 2017. A five-screen venue opened in Harrogate in September 2016.

 

The Group now operates 19 venues, up from 16 at the beginning of the year.

 

Since the period-end, trading has been in line with expectations following a good overall summer release slate in the cinema market set against a weak comparable period in 2015.

 

Review of the business

 

For the half year ended 30 June 2016, the Group's box office was up 50% on the previous year, reflecting favourably versus a market movement of +0.5%. This resulted in the Group's market share increasing to 1.46% for the period (30 June 2015: 0.94%) (Source: Rentrak EDI).

 

This above market growth reflects revenue contribution from new sites that opened during the period and through 2015. The growth and performance of these new venues supports the Board's continued confidence in the full Everyman concept and our continued investment in our future pipeline.

 

We feel that Everyman is enhancing its position as a well-respected brand in the UK leisure market and is attracting increased interest from developers looking for a cinema/leisure operator that appeals to a more discerning customer within a more intimate environment.

 

Openings

 

During this period, the Group opened a new three-screen venue on Whiteladies Road in Bristol on 17th May 2016 and has subsequently opened a temporary venue in Kings Cross in July 2016 and a permanent venue in Harrogate in September 2016. Kings Cross is a small one-screen venue close to the site where a new three-screen venue will open in late 2017.

 

Pipeline

 

The Group has continued to find attractive new site opportunities for future investment. Contracts have now been conditionally exchanged on sites at Horsham (expected to open in 2018), Durham (2019) and Wokingham (2019). These are in addition to those previously announced: Chelmsford (December 2016), Stratford-upon-Avon (2017) and Kings Cross (2017). It was previously expected that a new venue in Cirencester would open in 2017, however, the longstop date in the contract was reached without necessary conditions being satisfied, so we have exercised our option to exit the lease.

 

Financial Overview

 

As previously stated, revenue for the half-year ended 30 June 2016 was up 49% on the comparative six-month period to £12,128,000 (30 June 2015: £8,159,000, full year to 31 December 2015: £20,316,000).

 

The Group's underlying operating profit before acquisition costs, pre-opening costs, share-based payment expenses, depreciation and amortisation was £1,348,000 (30 June 2015: £704,000, full year to 31 December 2015: £1,705,000). The Group incurred pre- opening expenses of £281,000 in the period (30 June 2015: £347,000, full year to 31 December 2015: £775,000) which reflects the reduced opening of new venues during the period. Overall, the financial performance of the Group after all expenses and taxation is in line with the Board's expectations.

 

The effective tax rate is higher than the standard rate of corporation tax for the six-month period due to the effect of significant and continuing capital expenditure incurred by the Group.

 

The share-based payment expense for the period was £104,000 (30 June 2015: £62,000, full year to 31 December 2015: £15,000) reflecting share option incentives provided to the Group's senior management and employees.

 

The Group incurred a loss after tax for the period of £670,000 (30 June 2015: a loss of £430,000, full year to 31 December 2015: a loss of £556,000).

 

Cash Flows

 

Cash outflows from operating activities were £1,939,000 (30 June 2015: outflows of £773,000, full year to 31 December 2015: inflows of £2,959,000).  Net cash outflows for the period, before financing, were £7,443,000 (30 June 2015: outflows of £8,283,000, full year to 31 December 2015: outflows of £16,169,000).

 

Cash held at the end of the period was £1,692,000 (30 June 2015: £17,078,000,   31 December 2015: £9,173,000).  The cash held will be invested in the continuing development  and expansion of the Group's business.

 

During the period the Group entered into a new debt facility with Barclays plc. The facility is an £8 million three-year revolving loan facility. The facility provides an additional finance stream, in addition to the Company's existing cash resources, to allow continued expansion of the Company's cinema estate. No drawdown had taken place at 30 June 2016.

 

The Board does not recommend the payment of a dividend at this stage of the Group's development.

 

Current Trading

 

Since the period-end, trading has been in line with expectations continuing a reasonable overall summer in the cinema market.

 

We believe that it is a good period for film-making, with increasing confidence in the quality and quantity of film content over the coming years.

 

 

Paul Wise

Chairman

14 September 2016

 

 

Consolidated statement of comprehensive income for the six-month period ended 30 June 2016 (unaudited)

 

 

 

 

Six-month period

Six-month period

Year Ended

 

 

 

 

ended 30 June

ended 30 June

31 December

 

 

 

 

2016

2015

2015

 

 

 

 

£000

£000

£000

Revenue

 

 

 

                 12,128

                     8,159

                    20,316

Cost of Sales

 

 

                    (4,722)

                    (3,356)

                    (8,526)

Gross profit

 

 

                      7,406

                      4,803

                    11,790

 

 

 

 

 

 

 

Administrative expenses

 

 (7,673)

(5,031)

(12,262)

Acquisition expenses

 

 

                             -  

                             -  

                        (286)

 

 

 

 

 

 

 

Total administrative expenses

 

                    (7,673)

                  (5,031)

                  (12,548)

 

 

 

 

 

 

 

Loss from operations

 

 

(267)

(228)

(758)

 

 

 

 

 

 

 

Adjusted profit from operations

 

1,348

   704

 1,705

(before depreciation and amortisation, acquisition, pre-opening & share-based payment expenses)

 

 

 

Depreciation and amortisation

 

(1,230)

    (523)

 (1,387)

Acquisition expenses

 

 

  -  

 -  

 (286)

Pre-opening expenses

 

(281)

 (347)

(775)

Share-based payment expense

 

  (104)

   (62)

   (15)

Loss from operations

 

 

   (267)

   (228)

    (758)

Financial income

 

 

 10

 44

74

Financial expenses

 

 

                          (38)

                          (32)

                          (50)

 

 

 

 

 

 

 

Loss before taxation

 

 

                        (295)

                        (216)

                        (734)

Income tax (expense)/credit

 

                        (375)

                        (214)

                          178

 

 

 

 

 

 

 

Loss for the period

 

 

     (670)

   (430)

   (556)

Total comprehensive income for the period

                             -

                             -

   -

Loss for the period and total comprehensive income attributable to equity holders of the Company

 

 

 

                        (670)

                        (430)

                        (556)

Basic loss per share (pence)

 

                      (1.12)

                      (1.00)

                      (1.08)

Diluted loss per share (pence)

 

                      (1.12)

                      (1.00)

                      (1.08)

 

All amounts relate to continuing activities.

 

 

 

 

 

 

Consolidated statement of financial position at 30 June 2016 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 June

30 June

31 December

 

 

 

 

 

2016

2015

2015

 

 

 

 

 

£000

£000

£000

Assets

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

 

            28,268

    16,925

  22,344

Intangible assets

 

 

 

              8,040

                1,707

                8,073

 

 

 

 

 

            36,308

             18,632

             30,417

Current assets

 

 

 

 

 

 

Inventories

 

 

 

            223

                117

              227

Trade and other receivables

 

 

               1,963

                2,514

                2,825

Cash and cash equivalents

 

 

              1,692

             17,078

                9,173

 

 

 

 

 

               3,878

             19,709

             12,225

Total assets

 

 

 

             40,186

             38,341

             42,642

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

 

               6,735

                5,519

                8,778

 

 

 

 

 

               6,735

                5,519

                8,778

Non-current liabilities

 

 

 

 

 

Derivative financial instruments

 

 

                       -  

                   171

                   157

Provisions for other liabilities

 

 

               1,436

                       -  

                1,501

Deferred tax liabilities

 

 

                  671

                   568

 

 

 

 

 

               2,107

                   739

                1,954

Total liabilities

 

 

 

                8,842

                6,258

             10,732

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

            31,344

             32,083

             31,910

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Equity attributable to owners of the Company

 

 

 

 

 

Ordinary shares

 

 

 

                5,982

                5,982

                5,982

Share premium

 

 

 

            22,720

             22,720

             22,720

Merger reserve

 

 

 

            11,152

             11,152

             11,152

Retained deficit

 

 

 

 

            (8,510)

             (7,771)

             (7,944)

Total equity

 

 

 

             31,344

             32,083

             31,910

 

 

 

Consolidated statement of changes in equity for the six-month period ended 30 June 2016 (unaudited)

 

 

Share

Share

Merger

Retained

Total

 

capital

premium

reserve

deficit

equity

 

£000

£000

£000

£000

£000

 

 

 

 

 

 

Balance at 1 January 2015

             3,629

             5,774

          11,152

          (7,403)

          13,152

Loss for the period

                      -

                      -

                      -

              (430)

              (430)

Total comprehensive income for the period

                      -

                      -

                      -

              (430)

              (430)

Shares issued in the period

             2,353

          17,647

                      -

                      -

          20,000

Share issue expenses

        -

  (701)

      -

   -

 (701)

Share-based payments

      -

       -

     -

  62

   62

Total contributions by owners of the parent

             2,353

          16,946

                      -

                   62

          19,361

Balance at 30 June 2015

             5,982

          22,720

          11,152

          (7,771)

          32,083

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2015

             5,982

          22,720

          11,152

          (7,771)

          32,083

Loss for the period

                      -

                      -

                      -

              (126)

              (126)

Total comprehensive income for the period

                      -

                      -

                      -

              (126)

              (126)

Share-based payments

                      -

                      -

                      -

                (47)

                (47)

Total contributions by owners of the parent

                      -

                      -

                      -

                (47)

                (47)

Balance at 31 December 2015

             5,982

          22,720

          11,152

          (7,944)

          31,910

Balance at 1 January 2016

             5,982

          22,720

          11,152

          (7,944)

          31,910

Loss for the period

                      -

                      -

                      -

              (670)

              (670)

Total comprehensive income for the period

                      -

                      -

                      -

              (670)

              (670)

Share-based payments

                      -

                      -

                      -

                104

                104

Total contributions by owners of the parent

                      -

                      -

                      -

                104

                104

Balance at 30 June 2016

             5,982

          22,720

          11,152

          (8,510)

          31,344

 

 

 

 

Consolidated statement of cash flows for the six-month period ended 30 June 2016 (unaudited)

 

 

30 June

30 June

31 December

 

2016

2015

2015

 

£000

£000

£000

Cash flows from operating activities

 

 

 

Loss for the period

   (267)

(228)

     (758)

Adjusted for:

 

 

 

Depreciation and amortisation

         1,230

        523

        1,387

Share-based payments

                   104

      62

15

Corporation tax refunded

                         -

  59

    51

 

                1,067

 416

 695

Decrease/(increase) in inventories

                        4

  (26)

   (136)

Increase in trade and other receivables

                 (745)

   (605)

   (154)

(Decrease)/increase in trade and other payables

             (2,265)

  (558)

  2,554

Net cash (used in)/generated from operating activities

             (1,939)

   (773)

    2,959

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition

                         -

                         -

             (7,100)

Purchase of property, plant and equipment

             (7,121)

  (6,629)

 (11,452)

Purchase of goodwill

                         -

 (925)

   -

Refund/(deposit) on long-leasehold property

                1,607

    -

  (650)

Interest received

                      10

    44

     74

Net cash used in investing activities

             (5,504)

 (7,510)

 (19,128)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from the issuance of ordinary shares

                         -

  20,000

 19,391

Share issue expenses

                         -

  (701)

 (93)

Repayment of bank borrowings

                         -

(269)

 (269)

Interest paid

                   (38)

 (32)

  (50)

Net cash (used in)/generated from financing activities

                   (38)

 18,998

  18,979

Net (decrease)/increase in cash and cash equivalents

             (7,481)

             10,715

                2,810

Cash and cash equivalents at the beginning of the period

                9,173

                6,363

                6,363

Cash and cash equivalents at the end of the period

                1,692

             17,078

                9,173

 

 

 

 

Notes to the interim financial statements

 

1       General Information

Everyman Media Group plc and its subsidiaries (together 'the Group') are engaged in the ownership and management of cinemas in the United Kingdom. Everyman Media Group plc (the Company) is a public company domiciled and incorporated in England and Wales (registered number 08684079). The address of its registered office is Studio 4, 2 Downshire Hill, London NW3 1NR.

 

2       Basis of preparation

These condensed interim financial statements of the Group for the six months ended 30 June 2016 (the Period) have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements for the year ended 31 December 2015. Amendments made to IFRSs since 31 December 2015 have not had a material effect on the Group's results or financial position for the six-month period ended 30 June 2016.

 

The interim financial statements presented in this report have been prepared in accordance with IFRSs applicable to interim periods. However, as permitted, this interim report has been prepared in accordance with the AIM Rules for Companies and does not seek to comply with IAS34 "Interim Financial Reporting".

 

These condensed interim financial statements have not been audited, do not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's statutory consolidated annual financial statements for the year ended 31 December 2015. The auditors' opinion on these Statutory Accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or s498(3) of the Companies Act 2006.

 

3       Revenue

 

Six-month period

Six-month period

 

 

ended 30 June

ended 30 June

31 December

 

2016

2015

2015

 

£000

£000

£000

Film and entertainment

                      7,714

                      5,129

                    12,844

Food and beverages

                      3,752

                      2,629

               6,485

Other income

                          662

                          401

            987

 

                    12,128

                      8,159

      20,316

 

 

4       Income Tax

 

Six-month period

Six-month period

 

 

ended 30 June

ended 30 June

31 December

 

2016

2015

2015

 

£000

£000

£000

Income tax (expense):

 

 

 

Current tax

                             -  

                             -  

   -  

Deferred tax (expense):

 

 

 

Origination and reversal of temporary differences

                       (375)

                       (214)

   178

 

                       (375)

                       (214)

                          178

 

 

The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to the loss for the period are as follows:

 

 

 

Six-month period

Six-month period

 

 

ended 30 June

ended 30 June

31 December

 

2016

2015

2015

 

£000

£000

£000

Loss before taxation

                       (295)

                       (216)

                       (734)

 

 

 

 

Applied corporation tax rates:

20.00%

20.25%

20.25%

Tax at the UK corporation tax rate of 20.00%/20.25%

                            59

                            44

                          149

Expenses not deductible for tax purposes

                          (36)

                            (9)

                       160

Share-based payments

  (118)

 (12)

   -  

Capital allowances for the period in excess of depreciation

                      (506)

                             (345)  

                             (437)  

Arising from favourable leases

   6

     -  

    (3)  

Current year losses not utilised

      28

    -  

     -  

Losses brought forward

 242

   144  

      123  

Effect of change in tax rates on losses b/f

     -  

      4

   3  

Financial swap instrument

  (28)

        (11)  

     -  

Effect of other differences

  (22)

(29)

   183

Total tax (expense)/credit:

  (375)

(214)

178

 

 

5       Loss per share

 

Six-month period

Six-month period

 

 

ended 30 June

ended 30 June

31 December

 

2016

2015

2015

 

£000

£000

£000

 

 

 

 

Loss used in calculating basic and diluted loss per share

                       (670)

                       (430)

                       (556)

 

Number of shares

 

 

 

Weighted average number of shares for the purpose of basic loss per share

 

 

 

                    59,820

                    42,827

  51,376

Weighted average number of shares for the purpose of diluted loss per share

 

 

 

                    59,820

                    42,827

                    51,376

Basic loss per share (pence)

                      (1.12)

                      (1.00)

                      (1.08)

Diluted loss per share (pence)

                      (1.12)

                      (1.00)

                      (1.08)

 

 

 

Basic (loss)/earnings per share amounts are calculated by dividing net (loss)/profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

 

Where the Group has incurred a loss in a period the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect. The diluted loss per share for the six-month period ended 30 June 2016 is therefore the same as the basic loss per share for the period and the diluted weighted average number of shares is the same as the basic weighted average number of shares.

 

The Company has 4,845,829 potentially issuable shares all of which relate to the potential dilution from both the Group's 'A' shares and share options issued to the Directors and certain employees, under the Group's incentive arrangements.    

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LFFFFARIVLIR